Tesla CEO Elon Musk admitted on Wednesday that he’s “obviously overpaying” for Twitter — however the billionaire said he’s nonetheless “excited” to own the social media site.
“Though myself and the opposite investors are obviously overpaying for Twitter immediately, the long-term potential for Twitter is an order of magnitude greater than its current value,” Musk said.
The mogul’s comments got here during a Tesla earnings call that was held as his attorneys hammer out a final settlement with Twitter.
Musk said this month that he would end an on-again, off-again flirtation with Twitter by buying the location for $44 billion. But each side are still negotiating details of the deal and haven’t reached a final agreement ahead of an Oct. 28 court deadline, sources near the case said. If the deal isn’t closed by the top of the month, Twitter’s lawsuit against Musk for backing out will go to trial.
Shares of the social media site jumped about 1.5% to $52.48 in after-hours trading following Musk’s comments Wednesday, indicating increased investor confidence that the deal will undergo on the previously agreed price of $54.20 per share.
Analysts have speculated that Musk might want to sell billions of dollars price of Tesla shares to cover the bill for Twitter. Musk was barred from selling shares within the lead-up to Tesla’s earnings report but is now allowed to sell them. He didn’t address whether he would accomplish that on Wednesday’s call.
Musk also told the conference call he saw a path for Tesla to be price greater than two mammoth corporations, Apple and Saudi Aramco, combined. Some critics on Twitter blasted the audacious prediction as an try and “pump” the corporate’s stock as Musk prepares to sell his shares to pay for Twitter.